In any business organizations, financial calculations are extremely important. It needs that every business hires a chief financial officer to handle different financial obligations like the calculations of the tax, payment of the workers, preparation of the budgets of various departments and other important duties. Without an expert in finance, definitely you will have to go through so many challenges before you achieve your desired financial goals. However, you need to weigh the options of hiring the chief financial officer or prefer to have the outsource CFO. Both of the mentioned alternatives have their own merits and demerits. This calls for the close considerations of both alternatives. You will later on realize that hiring a virtual chief financial officer can be crucial as opposed to having a permanent one. The following are some of the advantages of hiring the contract out CFO in your firm;
- Saves money
- Saves time
- Better controls of business and reduced frauds risks
If you hire a chief financial officer, you need to pay for his or her salary in full term. You will also need to pay him or her all the benefits that are related to his or her job. These benefits include the taxes and other benefits that all employees that are on contract or permanent terms are entitled to. This means that your firm will have to utilize his or her services fully but the company will have to pay dearly for the services rendered. If your company could have opted to subcontract CFO, you will benefit a lot because you are only going to pay for the services rendered and the salary will be quite affordable. This will enable your firm to save as much money as possible. Saving money will mean that you are increasing the margins of your company hence increasing the probability of your firm to make more profits through saving some of its expenses.
If you have an employed chief financial officer, there are some times when his services are not needed at the firm. This means that at this particular time, the officer will be idle and can easily be pulled to perform other duties that are not related to his profession. However, if your firm prefers to outsource CFO, you can be pretty sure that this professional can only be available in the office during limited time when he or she is needed. He or she will be able to save time because he or she only comes to handle some specific tasks. By saving this time, the firm can prosper fast.
Better controls of business and reduced frauds risks
If you have a permanent chief financial officer, it means that he or she is going to relate easily with other workers of the firm because of that long relationship. This can be good and bad at the same time. Some important information may leak out to the employees. But if you outsource CFO, he cannot relate in any way with the workers. This makes your data safe.